Cholamandalam AMC hopes to double AUM by '04-05

Cholamandalam AMC Ltd hopes to double its assets under management (AUM) to Rs 2,500 crore and will double its client base to 1.5 lakh by 2004-05.

"We have firmed up a target of enhancing the asset under management to Rs 2,500 crore by 2005 through three strategies that we have drawn," said Sashi Krishnan, chief executive, Cholamandalam AMC.

"We have drawn a three-pronged strategy involving products, networking and retailing. Under the plan we intend to launch a floating rate fund as well as a few equity-related products this year. While the floating rate fund would be launched by August, the equity products would be launched through October to December," he said.

"The second part of the strategy involve increasing the company's network and reaching out to more distributors as well as other institutional buyers. The last part of the strategy involves reaching out to a large number of retail customers through the franchisee route. We are trying to make ourselves available in the smaller cities where we are not present as of now," he added.

"The idea is to make ourselves available in areas that are developing fast as commercial locations," he said.

In a bid to enhance its retail reach, the company is also planning to bundle mutual funds with general insurance from group companies.

"We are also talking to banks and other financial institutions for selling our products," he said.

Meanwhile, the company is in the process of launching two new funds "" the Chola Midcap Fund and the Chola Income Plus.

"We expect around Rs 100 crore from the Chola Income fund through the initial public offering. Around Rs 50 crore is expected to come from the open-ended fund in the initial offer," the chief executive added.